The Climate Change Committee (CCC) has published its annual assessment of the government’s progress in reducing emissions. It warns that households are facing higher energy bills because the UK is not electrifying fast enough.
The report says that overall emissions fell 1.8% in 2025, with good progress in a range of areas. Electric vehicle uptake continues to grow, with nearly one in four new car sales now electric. A record amount of new renewable energy was contracted in the latest auction, and peatland restoration has increased by 26 per cent. The UK is also on track to meet the fourth and fifth carbon budgets
Progress in electrification has slowed in other areas including heat pump installations in existing homes – up just 7% this year compared to 56% the year before. The share of electricity in industrial energy use also fell slightly last year. This is leaving people exposed to fossil fuel price shocks and puts later carbon budgets at risk. The government needs a more ambitious plan to electrify these key parts of the economy, including further action to reduce the cost of electricity.
New analysis shows that since the start of the Iran war households with gas boilers and petrol cars have seen energy bills rise almost four times more than those with heat pumps and EVs. A typical household could save around £1,200 a year today by combining an EV, a heat pump, solar panels and a time-of-use tariff. This rises to around £1,900 for some rural homes.
Nigel Topping CMG, Chair of the Climate Change Committee, said: “The cost-of-living crisis continues to put pressure on households, with people paying the price of another fossil fuel price shock, so close to the crisis in 2022.
“The transition to clean electricity is not happening fast enough. Government support to accelerate the shift to electric vehicles and heat pumps is critical, not only to keep our climate targets within reach but to unlock savings. At this moment of political uncertainty, any weakening of current positions risks slowing these transitions, undermining investment and the long-term consistency businesses need.
“This is about more than targets, it’s about cleaner air, energy security and shielding the economy from fossil fuel shocks. Ultimately this is about putting money back into people’s pockets.”
Only 58% of the required emissions reduction to hit the UK’s 2030 Nationally Determined Contribution target is covered by credible plans, or those with some risk.
The Committee’s priority recommendations in the report include making electricity cheaper through measures such as removing remaining policy costs from electricity bills and enabling a more rapid transition to EVs, for example by expanding affordable charging infrastructure.
The report also recommends accelerating the installation of heat pumps in buildings by cutting costs, removing barriers, and supporting low-income households, and delivering on industrial electrification including speeding up grid connections to remove barriers for businesses electrifying operations.
